000			05796 a2200181 4500
020			_a9780070668072
082			_a330.1 _bGUP
100			_aGupta, G. S. _912907
245			_aMacroeconomics : theory and applications
250			_aEd.3
260			_bTata McGraw hill education pvt. ltd. _c2009 _aNew Delhi
300			_axv,532p
505			_aCONTENTS Preface to the Third Edition Preface to the First Edition PART 1: INTRODUCTION AND MEASUREMENT 1. Introduction: An Overview 3 Economics 4 Microeconomics and Macroeconomics 8 Methodology in Economics 9 Theory of Aggregation 13 Macroeconomic Goals and Instruments 15 Subject Matter of Macroeconomics 19 Indian Economy vis-a-vis the World Economy 19 References 22 Review Questions 22 2. National Income 23 Income Concepts 23 Economic Units and Circular Flow of Income 30 Income Measurements 32 Nominal and Real Income 39 Measured and PPP Income 40 Income and Human Development Index 41 Income and Welfare 41 International Data and Compartaive Analysis 43 References 46 Review Questions 46 3. Inflation, Unemployment and Poverty 50 Inflation 50 Unemployment 62 Poverty 68 Income Inequality 70 References 72 Review Questions 73 4. Money, Fiscal and Foreign Sector Variables 75 Money and Liquidity Magnitudes 75 Interest Rates 79 Fiscal Magnitudes 81 Foreign Sector Magnitudes 84 References 101 Review Questions 101 PART 2: BEHAVIOURAL AND TECHNOLOGICAL FUNCTIONS 5. Consumption Function 107 Components of Consumption 108 Determinants of Consumption 109 Consumption Function 125 Conclusion 125 References 126 Review Questions 127 6. Investment Function 129 Components of Investments 130 Motivation for Investment 131 Investments and Capital 133 Determinants of Investment 134 Investment Function 142 Conclusion 143 References 143 Review Questions 144 7. Government, Foreign Trade and Foreign Exchange Rate Functions 145 Government Sector 145 Net Exports and Globalisation 149 13 Open Economy 150 Net Exports, Income Identity and Saving Investment Gap 151 Determinants of Trade/Exports and Imports 152 Net Export Function 155 Determinants of Capital Flows and the Function 160 Foreign Exchange Rate System 162 Determinants of Foreign Exchange Rate 167 International Financial Institutions 173 Conclusion 174 References 175 Review Questions 176 8. Money Demand and Supply Functions 179 Demand for Money 180 Supply of Money 188 Regulation of Money Supply and Instruments of Monetary Policy 198 8.4 Conclusion 205 References 205 Review Questions 206 9. Production Function, Factor Market and Aggregate Supply Function 209 Production Function 212 Demand for Factors of Production 214 Supply of Factors of Production 217 Factor Market Equilibrium 220 Aggregate Supply Function 222 Phillips Curve 233 Phillips Curve vis-a-vis Aggregate Supply Function 238 Price Expectations' Models 239 Conclusion 242 References 242 Review Questions 243 PART 3: ECONOMIC FLUCTUATIONS AND STABILISATION POLICY: MACROECONOMIC MODELS 10. Business Cycles, Stabilisation Policies and Economic Models 247 Business Cycles 247 Stabilisation Policies 254 Macroeconomic Models 267 References 270 Review Questions 270 11. Classical and Keynesian Fixed Price Models 272 Classical Model 272 Keynesian Cross Model 27H Keynesian IS-LM Model 288 Applications of the Keynesian Model 302 Case Study 303 Conclusion 304 References 304 Review Questions 305 12. Keynesian Fixed Price, Open Economy (Mundell-Fleming) Model 307 Open Economy IS-LM-BP Functions 307 Open Economy IS-LM Model Under Floating Exchange Rate System 314 Open Economy IS-LM Model under Fixed Exchange Rate System 318 A Comprative Analysis 321 Policy Mechanisms/Channels 321 Conclusion 325 References 326 Review Questions 326 13. Keynesian Flexible Price (AD-AS) Model and Policy Debate 328 Flexible Price IS-LM Functions 329 Flexible Price AD Function 331 Flexible Price AS Function 338 Flexible Price AD-AS Model 339 Supply Shocks and Supply Side Economics 348 Policy Lags and Discretionary versus Rule Based Policy 352 Fiscal Policy vis-a-vis Monetary Policy 355 Conclusion 358 References 358 Review Questions 359 14. New Classical and New Keynesian Models 361 New Classical Model 361 New Keynesian Model 375 Conclusion 381 References 383 Review Questions 384 15. Unemployment and Inflation: Causes, Consequences and Cures 387 Unemployment—Definition 388 Causes of Unemployment 388 Consequences of Unemployment 393 Cures for Unemployment 396 Inflation—Definition 398 Causes of Inflation 399 Consequences of Inflation 404 Cures for Inflation 413 Conclusion 416 References 416 Review Questions 417 PART 4: ECONOMIC GROWTH AND THE STATE OF MACROECONOMICS 16. Economic Growth 423 Determinants of Income and Growth 425 Harrod-Domar Model 427 Solow (Exogenous Growth) Model 428 Golden Rule 438 Limitations of the Solow Model 440 Endogenous (new) Growth Theory 443 Evidences on Sources of Growth 452 Limits to Economic Growth 454 Conclusion 455 References 457 Review Questions 458 17. State of Macroeconomics 459 Measurement of Economic Variables 459 Business Cycles and Stabilisation Policies 461 Economic Growth 465 Conclusion 466 References 468 Review Questions 468 Appendix I: Comprehensive Case Studies 470 A 1.1 Select Countries 470 A 1.2 Select Macroeconomic Variables and Data 479 A 1.3 Comprehensive Case: Japan's Lost Decade and Continuing Struggle 479 A1.4 Commentary on Select Countries from Selected Countries 483 Appendix II: Multiple Choice Questions 485 Appendix III: Fill in the Blanks Questions 513 Answers to Numerical Questions 524 Index 527
600			_944677
890			_aIndia
891			_aGRATIS
942			_2ddc
999			_c43855 _d43855